Dallas, Texas 09/18/2013 (Financialstrend) – Golden Star Resources Ltd. (USA) (NYSEMKT:GSS) share is trading at $0.5 as of close of business on September 17, which translates to a 3.76% appreciation on its previous day close of $0.48 per share. At current valuations, it reflects a 76% decrease in its share price compared to its 52 weeks high and only 4.1% up from its 52 weeks low price. Its market capitalization is $128 million with 259 million outstanding shares.
The past 30 days of trading has seen the market value of its share melt by over 25%. This can be traced back to August 12 release of its 2Q13 and half year results. In the first six months of operations in FY13, the company had to partake $193 million towards impairment charges at its Bogos and Wassa operations. In its second quarter, due to drop in international gold prices, the company experienced a dip of over $182 per ounce of realized gold price in 2Q. In order to tide over the weak gold pricing and operational issues, the company temporarily stopped production at its Pampe open pit mine in 2Q. In spite of disruption to its cash flow, the company had to plough in $56.7 million into predefined capital expenditure projects.
Company proposes to cut down capital expenditure for rest of FY13 to just $20 million to tide over the situation in addition to 10% cut in annual operations expenditure. The company is also pushing out its expansion plans at Chujah pit to later date.
GSS is a Canadian gold mining company with gold production operations in Ghana, West Africa. The Company is also currently involved in gold exploration activities in other countries in South America. It is also involved in several gold exploration projects in Sierra Leone, Niger and Cote d’Ivoire in addition to explorations in Brazil.